Who was the companys auditor and where is it located

Assignment Help Auditing

Reference no: EM131460681

Accounting Financial Statement Analysis Assignment

Part I - General Information Contents

How to Read Annual Reports: https://www.ibm.com/investor/help/reports/index.html?tab=tab_BB

Read the information provided above and answer the following questions:

1. What are the optional and required (by SEC, Securities & Exchange Committee) elements required in an annual report?
2. Describe the contents of the Management Discussion and Auditor's Report.

Download PepsiCo 2015 Annual Report from Sakai and answer following questions:

A. Management's Discussion and Analysis (MD&A)

Identify two primary drivers/issues that explain current and future results of operations discussed in the MD&A. For example, the gross profit percentage increased because of improved buyer/supplier relationship resulting in greater overall operating performance.

B. Independent Auditor's Report

a. Who was the company's auditor and where is it located?
b. What is responsibility of the auditor?
c. Who is responsible for the preparation of and information within the company's financial statement?
d. The audit was conducted in accordance with what?
e. What was the opinion of the auditor?

Part II - Financial Data

Use Excel or Table function in MS Word to create a table for every data that you used in your analyses and the page number where they can be located. For example:

Data	Page Number
Net Revenue	63
Accounts Receivable	98

You may use Table function in Word or Excel for data analysis.

C. Trend Analysis:

a. Make a 3-year trend analysis, using 2013 as the base year, of [1] net sales and [2] net income.
b. Comment on the significance of the trend analysis results.

D. Ratios Analysis (Include Formulas):

a. Compute for 2015 and 2014 the [1] profit margin, [2] asset turnover, [3] return on assets, and [4] return on common stockholders' equity. Comment on PepsiCo's profitability.

b. Compute for 2015 and 2014 the [1] debt to total assets and [2] times interests earned ratio. How would you evaluate PepsiCo's long-term solvency?

E. Other Resources:

a. Use the internet to search for THREE other resources that may assist you in analyzing PepsiCo's financial statements.

Submit a hard copy (printout) of the homepage (1st page only), including its URL (only the homepage). State the reasons that they were selected.

b. For each of the sources, state how you would use the information obtained to analyze the PepsiCo's financial statements.

c. State whether the additional information confirms or contradicts your previous assessments.

F. Based on the information collected and analyses, state your reasons why a potential should / should not invest in PepsiCo. Be specific.

Reference no: EM131460681

Questions Cloud

Construct the appropriate graph for the new variable : Construct the appropriate graph(s) for the new variable, sugar. Calculate the mean and median of the new variable, and their standard deviations.

Analysis of two cultural paths to adulthood : Briefly describe the two identified cultures, including important characteristics such as geographical location, religion(s), and political powers.

Initial investment outlay for machine for capital budgeting : What is initial investment outlay for machine for capital budgeting purposes, What is the initial investment outlay for machine for capital budgeting purposes.

Discuss the sampling bias in the given sampling strategies : Vons, a large supermarket in Grover Beach, California, is considering extending its store hours from 7:00 am to midnight, seven days a week, to 6:00 am.

Who was the companys auditor and where is it located : Who was the company's auditor and where is it located? Who is responsible for the preparation of and information within the company's financial statement?

Comparing your own path to adulthood : Identify the generation of yourself and your chosen grandparent (or similar elder) based on the terminology from Pew Research Center (2015) and similar resources.

Norwegian krone to prevent arbitrage : What would the six-month forward rate have to be on the Norwegian krone to prevent arbitrage?

Find probability that average american makes calls per day : Recent research suggests that Americans make an average of 10 phone calls per day (CNN, August 26, 2010). Let the number of calls be normally distributed.

Rules concerning manner in which corporation treat dividends : Analyze the significant rules concerning the manner in which corporations treat the dividends that they are paying

User Account

All Pages